3rd Year HF Analyst Q&A
Prior reading: Hedge Fund: The Investment Life Cycle. Quick background: Penn undergrad - 2 years at AM firm - 2 years at large HF - currently in 1st year at 2-3b long/short HF with heavy emphasis on value.
I still had some questions floating around my inbox that I may have missed and some questions from the comments from my last thread, so I figured if anyone still has questions from the last post, or new questions, I'd be happy to answer them here.
I can field questions related to breaking in, recruiting, the investing process itself, lifestyle, etc. I've just recently been getting a bit more involved in the non-investing related aspects of the fund such as employment and plans for future fundraising, so I can get into a bit about that too if anyone has specific questions.
Post questions in the comments, or if you prefer them anonymously, send me a PM. As always, I'm also open to answering personal questions via PM if you prefer them held out of the thread, but doing this for everyone's benefit first and foremost. Fire away.






As a value investor, what
As a value investor, what potential opportunities/threats do you think will reveal themselves as interest rates rise after 2014?
The current generation hasn't been around long enough to deal with higher interest rates and inflation which may lead to a significant number of bankruptcies in the following years. Maybe high yield and restructuring will become revitalized, but from an equities perspective do you see certain players as having an upper hand during this period due to large cash stockpiles, strong revenue streams, etc.?
Thanks for doing a Q&A, always interested in hearing your insight.
Talent is hitting a target no one can hit.
Genius is hitting a target no one can see.
Determined: As a value
As a value investor, what potential opportunities/threats do you think will reveal themselves as interest rates rise after 2014?
The current generation hasn't been around long enough to deal with higher interest rates and inflation which may lead to a significant number of bankruptcies in the following years. Maybe high yield and restructuring will become revitalized, but from an equities perspective do you see certain players as having an upper hand during this period due to large cash stockpiles, strong revenue streams, etc.?
Thanks for doing a Q&A, always interested in hearing your insight.
I wish I had the opportunity to answer this question before David Einhorn wrote his "Jelly Donut" piece for the Huffington Post. I have to echo what he said now, even though it's been a somewhat agreed-upon hypothesis for a lot of guys I've talked to lately. Rising interest rates, which technically are inevitable since we have nowhere to go but up from here, are actually a good thing. We have a lot of the public, particularly the retiring public, out there right now with no choice but to be involved in the stock market - they can't afford not to be, given how low rates are. As the most risk-averse piece of these investors exits the stock market once interest rates turn back up, we'll see a decline in the stock market. Most of the companies we're seeing with these disgustingly high P/Es are going to see runs on their stock prices, and those who choose to stay in the stock market are going to be piling back into the "steady Eddie" stocks. This is part of the hypothesis of going after the most growthy-y of the growth stocks right now and shorting them while we have the chance. The same strategy can be said for those companies that we think are more "boring" but are defensive positions that are likely below their intrinsic values. Essentially, once these rates start to climb (though I have no idea when that will be), we'll see a reversion where people are giving more respect to the safe, blue-chip stocks and less love to these Sodastream/Green Mountain type companies that had sky-high valuations given their low earnings.
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Random questions. Is it
Random questions.
Is it possible to break in from BB ER? Does the CFA help?
Are there people in HFs who have not worked in finance before their MBA?
Do you enjoy your career?
Do you enjoy your career? Pros and Cons
Whats the matter? Scared of my little red fuzzy anus? Don't be shy,let me show you the way, give me your hand and I will take you to paradise <3
Kind Regards,
ElmElm
is that you in the pic?
is that you in the pic?
can you give us an example
can you give us an example "day in the life of blackhat" ie what is a typical workday like for you, from rise to crash
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SB for you man. These are the
SB for you man. These are the best threads on the site.
jelly donut link for anyone
jelly donut link for anyone that cares: http://www.huffingtonpost.com/david-einhorn/fed-in...
going the lazy route, huh?
going the lazy route, huh?
What backgrounds do your
What backgrounds do your fellow analysts seem to be coming from, both from an undergraduate/MBA point of view, and from a previous job perspective?
What did you do in AM? How
What did you do in AM? How did you get there? and how did it help you get into HF industry?
Do what you want not what you can!
can you make $500k - $1MM as
can you make $500k - $1MM as an analyst or do you have to be a PM to make that kind of money?
BigHedgeHog: can you make
can you make $500k - $1MM as an analyst or do you have to be a PM to make that kind of money?
lose yourself
Do what you want not what you can!
Did you work as analyst or ER
Did you work as analyst or ER in AM? I am planning to go to ER and wonder if it will help me transfer to HF down the road. Thanks!
Wow, you are who I want to be
Wow, you are who I want to be in the next few years.
I am also a Penn grad going into a large AM (equities side), and interested in going to a HF in the long run. I have some questions about your jump from AM to HF. Is there a recruiting process like there is for IBD->PE? How does it work/how did you break in? I read your other thread and you mention hybrid AM/HF firm that you started out in. Does that mean that you were in the HF group/strategy of an asset manager? Also, how do you get "poached" by HFs? Do you just call up PMs and ask if they have an analyst opening?
Also, do you start out as an associate at the AM and now are you an analyst at the current fund?
does every position in your
I'm starting in buyside value
"One man with courage makes a majority." — Andrew Jackson
I know you covered this
I would love any advice for
JamesHetfield: Random
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AndyLouis: can you give us an
I hate victims who respect their executioners
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cooldurg: What backgrounds do
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YGCS: Wow, you are who I want
I hate victims who respect their executioners
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BigHedgeHog: can you make
I hate victims who respect their executioners
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eriginal: Also, do you enjoy
I hate victims who respect their executioners
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As a value investor/analyst,
arzoo: As a value
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Quick question: Then what in
blueslord2910: Quick
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I have a bunch of questions.
Thanks for the
BlackHat: 8:00am - Back at
BlackHat: blueslord2910: Qu
Sent you a PM.
Blackhat thank you for being
"Everything comes to those who hustle while they wait."
-Thomas Edison
I've heard that some firms
"Everything comes to those who hustle while they wait."
-Thomas Edison
Probably the dumbest rumor
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Interested in further
arzoo: 1. How much
I hate victims who respect their executioners
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By far the coolest job
If I want to do value
Midatlantica: If I want to do
I hate victims who respect their executioners
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Any advice on breaking into
Midatlantica: Any advice on
I hate victims who respect their executioners
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Based on your post, I assume
blueslord2910: Based on your
I hate victims who respect their executioners
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Would you say that the ITW in
One of the funds I came
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Thanks BlackHat. Definitely
Great thread. Thanks